Chevron Corporation [NYSE: CVX] has disclosed a deal today that it has signed an agreement with Noble Energy Inc. [NASDAQ: NBL] to purchase all of its outstanding shares at $5 billion, or $10.38 per shares.
According to the terms of agreement and the closing price of Chevron On July 17, 2020, Noble Energy Inc sharesholders will receive 0.1191 shares of Chevron Corporation. The deal would also comprised all the debt of Noble Inc andd valued at $13 billion.
American multinational energy corporation Chevron is striving to increase its business. The deal between Chevron and Noble Energy is the largest acquisition since the coronavirus pandemic hit the oil industry.
The acquisition of Noble Energy provides a low cost, proved reserves, and attractive undeveloped resources that will add to the already existing portfolio. Noble energy not only strengthened the position of Chevron in the Eastern Mediterranean but also provides a low-capital, cash-generating asset in Israel.
Shares of Chevron had exhibited a change of -1.17 and a percentage change of 1.32% during the trading of Friday. It has closing price of $87.19. In the past 52–weeks of trading, Chevron’s stocks has changed between the low of $51.60 and a high of $127.00. It has moved up 68.97% from its 52-weeks low and moved down -31.35% from its 52-weeks high.
If we look at the profitability of Chevron Corp. has Retrun On Assets (ROA) of 1.60%, Return On Equity (ROE) of 2.60% and Retrun on Investment (ROI) of 0.20%. This company’s Gross Margin is 43.80%, its Operating Margin is 1.90% and its Profit Margin is 2.90%.
While on the other side, during the trading of Friday Noble Energy Inc. shares had tumbled down 2.92%, or -0.29 at a closing price of $9.66. This company had a trading volume of roughly 7.66 million as compared to the average volume of 11.06 million. Right now, this company has a 52-weeks low and high range of $2.73-$27.31, respectively.
Nobel energy had a trading volume of 7.66 million as compared to the average volume of 11.06 million. If we look at its profitability, it has return on assets, equity and investment is -25.30%, -67.00% and -6.40%, respectively.
Chevron Chairman and CEO Michael Wirth said that this is a new opportunity to acquire reserved resources. The company’s strong balance sheet allows Chevron to buy a quality of assets in this pandemic.
David Stover, Noble Energy’s Chairman, and CEO said that the acquisition allowed the company to joined the company which has a strong balance sheet and is a global diversified energy leader.